so even though my two kids, 7 & 9, stay with me 45% of the time, I provide a household for them, & pay all child care expenses, I cannot claim to be a head of household or write off the dependent care expenses? please confirm. so much for using the tax code to encourage positive behavior & personal responsibility. once again Washington talking out of both sides of their large mouths

Couple divorced in 2000. Two children involved, current ages 12 and 14 years old. Non custodial parent requesting custodial parent to sign Tax Form 8332 -for 14 year old child in order to file Taxes for 2008. Custodial parent refusing to sign the form. Custodial parent’s tax refund has been filed -it is assumed not claiming 14 year old child-. Are there any steps noncustodial parent needs to follow in order to be able to file 2008 tax claim on a timely manner? If so, what are they and who should be contacted?

Also, custodial parent has never agreed to sign Form 8332 for 14 year old child. -By doing so, it is assumed that custodial parent has tried to set presedent as of which child will be claimed once oldest child is non-claimable (18 years or highschool graduate). If this assuption is right, can custodial parent in deed keep claiming younger child for the two years after older child is non-claimable? Any recommendations as of ways to rectify this if at all possible?

Thank you in advance for your help!

It appears the IRS considers my new spouse as built in childcare because she was not working. It is complicated because new spouse did not get a W-2 but a form 1099-G for unemployment benefits…and those are not considered earned income. The new spouse received unemployment benefits, documented looking for work but without a W2 to post for the year so then I lose the Child Care credit. That is a huge hit. I’m trying to work this a few different ways and its not working…any tips?

Thanks again.

http://bedbuffalos.blogspot.com/2009/03/provocative-question-from-taxpayer.html

I used the National Bureau of Economic Research TaxSim model to project 2009 estimated tax liabilities. It turns out that taxes under option 1 are lower than under option 2, but either Scott and his ex-wife will face a lower total tax bill than if they had stayed married. Remarrying before the end of 2009 would raise their total tax bill about 50% compared to option 1.

Since the kids don’t actually live with one more than the other, I think it would be ethical to work it either way.

1. Low income parent: claims EIC on both, child care, HOH
High income parent: claims both dependents, single (can they also claim HOH), no child care

2. Low income parent: claims EIC on one child, HOH
High income parent: claims both dependents, HOH, child care on 1 child

I realize this is kind of complicated and probably not the greatest description, but would greatly appreciate any advise.

The answer to that is easy.

If the custodial parent won’t sign the release, then as far the IRS is concerned, she can claim the benefits for the child. It’s not the job of the IRS to enforce divorce agreements.

I’m not a lawyer, but I assume the only avenue of recourse for the non-custodial parent in a situation where the custodial parent refuses to sign the release would be to go to the Family Court judge who issued the decree to get an order forcing the custodial parent to sign the necessary paperwork releasing the claim to exemption.

Thanks much for the clarification.

I agree that it’s tricky and quite frankly, Pub 501 is not terribly clear on that point.

The exception that you’re talking about is here: “If a child is treated as the qualifying child of the noncustodial parent under the rules for children of divorced or separated parents described earlier, only the noncustodial parent can claim an exemption and the child tax credit for the child. However, the noncustodial parent cannot claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. Only the custodial parent or another eligible taxpayer can claim the child as a qualifying child for these four tax benefits.”

Literally, pages and pages of explanation about children of divorced parents – and a three sentence exception. But an important one.

I suspect it’s going to become more complicated in the future. Whereas you used to be able to attach the applicable pages of your divorce decree, beginning with your 2009 returns, “the noncustodial parent will no longer be able to attach pages from the decree or agreement instead of Form 8332 if the decree or agreement was made after 2008. The noncustodial parent will have to attach Form 8332 or a similar statement signed by the custodial parent and whose only purpose is to release a claim to exemption.”

Which begs the question, if the custodial parent won’t sign, what happens? Does the IRS then go to the tie-breaker rules?